New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-08-10
IVES AND STAYNER RESIGN.
NEW EXECUTIVE OFFICERS FOR GIN GIN
MATT, HAMILTON AND DAYTON.

MATT. HAMILTON AND DAYTON.
THE FORMER PRESIDENT AND yrcEPREsrpyNr RE.
MAIN DIREcTORs-coMMITTEEs INVESTIGATING
THE coMPANY's AFFAIRs-THE INTEREST
ING WAY IN WHICH IVES AND STAY
NER UsEp THEIR POWER.
Henry 5. Ives and George II. Stayner resigned
their places as the two chief executive officers
OF the Cincinnati, Hamilton and Dayton Railroad
Company at a meeting of the directors yesterday.
A. S. Winslow, of Cincinnati, made president
instead Of Mr.. Stayner, and Christopher Meyer
of this city was made vice-president. Two vacan-
ces in the board were filled by the election of
Mr.. Winslow and Julius Dexter, but the vacan-
ces were Of long standing and the two officers
remained directors of the company. The new board
is composed as follows: A. S. Winslow. Christie
pher Meyer. Henry S. Ives George ii. Stayncr,
julius Dexter, John Carlisle. G. c. Waite, L. B.
Harrison, and F, H. Short. Mr. Ives personally
offered resolution that commit
tee should be appointed to investigate
the affairs OF the company, and Julius
Dexter, Vice-President Meyer and c. c. Waite,
who Is second vice-president and general manager,
were appointed In compliance with the suggestion.
Mr. Ives afterward referred to the committee as
trustees to whom the firm had practically turned
over its property for its protection well as
| that of its creditors. The statement was made
HgurauVely, 1or tne nrm turned over nOtnlng eN-
cept the Offices. 1t undoubtedly gave rise to tho
later rumors that Ives g. Co. had made an as
sgnment In favor of the railroad company Tho
rumors we're promptly denied by members Of tho
firm, wLo stated that assignment was con-
tempated.
The result of the meeting was plainly victory
for the Western stockholders of the company,
and the large New-York creditors have no repre-
sentative in the board aside from Vice-Prcsdent
Meyer. This fact together with the retention OF
Messrs. Ives and Stayner in the board excited
a suspicion in Wall Street that the retiring
officers had been paid something in the way OF
money OF valuable agreement for the resigna-
tions they had previously refused with somo
spirit. 1t could not be learned that there was
good ground for the suspicion. II is believed
that Christopher Meyer, who is one of the largest
creditors in this city, instrumental in bring
ing about this partial settlement Of the difficulty.
1t has been stated that the Stock Exchange firm
Of William Fellowes Morgan & Co., the largest
creditor, depended somewhat on alleged guar
sntee of its loan of $2,OOo.ooo by Mr.. Meyer.
In speaking Of the subject few days ago William
Fellowcs Morgan said simply that IL would be
improper for him to discuss the question. IL is
known however, that Mr. Meyer was deeply in
tcrested in the Ives syndicate and when the
Baltimore and Ohio deal was under way went N
Baltimore with Mr.. Iyes several times. 1t is
reported also that several banks and trust COM
panies who hold some of the Ives loans have abb
stained from taking part in the recent squabbe
relying upon the positive guarantee OF Mr.. Meyer,
which they considered better perhaps than the
collateral.
The trustees rs Mr. Ives called the committee,
began an investigation Immediately. The committee
Of creditors, consisting of Irving A. Evans, or
Boston. Thomas J. Emery, of Cincinnati and
James Thompson, of Foster & Thompson, of this
city, of counsel for William FclOwcs Morgan g.
Co., also began inquiry, The result OF the
inquiry by the two committees when work was
suspended for the day was 900 new pre-
ferred stock had been issued by the recent man.
agement. This makes the total amount outstand-
| ing so far as the committees have discovered
| $4,000, 900. little than half of the new
stock is known to be in tie possession of Robert
| Garrett to whom it was given for option for
the purchase of controlling interest in the
! Baltimore and Ohio railroad. The rest was scat
| tered obOut In loans and purchases.
Henry s. Ives again repeated that he had moth
! ing whatever to say about the matterswith which
| his name is connected, and Mr.. Stayner begged
TO be excused with more than his usual gracious
ness 1t is understood that persons largely inter-
ested In the railroad company are renewing their
| efforts to place the control on stable foundation
Overtures In this direction were again made yes
terday and it rumored that large majority
| Of both classes of stock was offered for S3,500000
in cash. The efforts were not successful, although
| they were not entirely abandoned.
1t was stated by some of the representatives
| of the creditors of Ives & Co. that no compro-
mise had been made to induce the designations OF
the principal members of the firm, and no settle
ment of the claims Of the company against tho
| banking firm had been made. The situation was
| tEus stated by one Of these representatives;
All that has been done has the change
in the directory and executive management which was
required position OF Ives & Co. toward the
pany aud the beginning Of an invesgaion into the con-
dition OF affairs by the conference committees OF the
directors and creditors Ives * Co. remain owing the
| COMPANY which they canuot Wnat futurc
action may be taken by the creditors the directors
that will depend npon future developments and
Mr. and Mr. sayner to resign nor have these gem
euces They recognized the improprety OF their holding
tnelr places officers when they owed sums which they
could pay the company Nor has Mr. Ives reiuse:
to allow examination OF the books and accounts Ot
his firm He has every request for an examination
with dec aration that would be allowed but he has
said that 1t would require time to prepare forl
1t is suspected that the present policy Of tho
credItors is to deal as gently with Ives u Co as
possible IN order the more easily 10 OBTAIN lniorma-
| ton which may strengthen the position or the in-
vestIgators. But It would be decidedly premature
to saw that the result OF the matter may not be the
initiation of interesting legal proceedings Nor Is
any future litigation likely to be confined 10 the
persons intere sted In this CITY, In fact the cred.
itors Yesterday professed the utmost conhaence IN
| their ability 10 recover the preferred stock of the
! Cincinnati, Hamilton and Dayton held Dy koDert
Garrett, of the Baltimore and Ohio. rs forfeis
! ;or the failure of Ives & Co. to carry out their
contract Tor the purchase OF tie Baltimore road.
Here is how the creditors put tneir case:
The investigation far has revealed the fact that OF
the ~ 600 preferred stock OF the iDcnna, ilaw-
ton and DAYTON issued by Ives and stayaer acting as
majority of the executive committee under the author
itv Tor the issue OF SiO0OOOOO series C granted ny
the board OF directors 81 100000 In the hands OF Mr.
Garrett The original 900 preferred stock was
issned In two ries A" aud b. But the series A
stok was authorized be issued only for the general
! purposes" OF the company. The creditors raise tne
noit IN at no court law would hold that the general
! purposes" Of the company, as mentioned In tne
| autnoriZin2 resolution, meant the use OK
| the stock TO buy out railroad three or
| four times larger than the wonld-be purchasing
road with ap extensive telegraph and express system
atIacGed The stock is alleged TO have borne an tho
"earmarks OF improper issue Is believed oy tho
hat they eau readily recover the STOCK hed oy
Mr. Garrett or hold him responsible as co-c0nspirao III
the depletion Of the treasury OF tho Cnchn. na'on @ M
n1 n.vton The creditors claim that they can re-